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Indices trade with significant cuts; realty stocks extend losses

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Capital Market
Last Updated : Jan 28 2021 | 5:50 PM IST

The key equity indices continued to trade with steep losses in mid-afternoon trade. Realty stocks declined for fifth consecutive session.

At 14:26 IST, the barometer index, the S&P BSE Sensex, tumbled 582.30 points or 1.23% to 46,827.63. The Nifty 50 index lost 149.10 points or 1.07% to 13,818.40.

The January 2021 F&O contracts will expire today, 28 January 2021. Global cues were weak as a rise in the volatility index (VIX) worried investors. Rising coronavirus cases and uneven distribution of vaccine rollouts also triggered selling pressure.

Fed Chairman Jerome Powell said that the U.S. economy was a long way from full recovery and still short of policy makers' inflation and job goals. The central banker made it clear that the U.S. central bank was nowhere near exiting massive support for the economy during the ongoing coronavirus pandemic, as officials left their benchmark interest rate unchanged near zero.

The broader market incurred modest losses. The S&P BSE Mid-Cap index fell 0.55%. The S&P BSE Small-Cap index slipped 0.56%.

The market breadth was exactly even. On the BSE, 1397 shares rose and 1397 shares fell. A total of 188 shares were unchanged.

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Numbers to Track:

In the foreign exchange market, the partially convertible rupee depreciated to 73.1050 compared with its previous closing of 72.9250.

The yield on 10-year benchmark federal paper fell to 5.943% from its previous closing of 5.954%.

MCX Gold futures for 5 February 2021 settlement fell 0.30% to Rs 48,716.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.12% to 90.28.

In the commodities market, Brent crude for March 2021 settlement lost 41 cents to $55.40 a barrel. The contract added 0.18% or 10 cents to settle at $55.81 in the previous trading session.

Buzzing Index:

The Nifty Realty index fell 2.44% to 303.40, extending losses for fifth day. The index has declined by 10.34% in five sessions.

Brigade Enterprises (down 5.6%), Sunteck Realty (down 4.77%), Prestige Estates (down 4.17%), Godrej Properties (down 4.05%), The Phoenix Mills (down 2.93%), Sobha Developers (down 2.82%), Indiabulls Real Estate (down 2.41%) and Oberoi Realty (down 2.13%) declined.

Earnings Impact:

Bank of Baroda (BoB) slumped 10.36% to Rs 66.20. BoB reported a net profit of Rs 1,061.11 crore in Q3 FY21 compared with net loss of Rs 1,406.96 crore in Q3 FY20.

Net interest income improved 8.65% to Rs 7,749 crore in Q3 December 2020 from Rs 7,132 crore in Q3 December 2019. Operating profit in the third quarter stood at Rs 5,591 crore, up by 12.77% from Rs 4,958 crore in the same period last year.

Provisions and contingencies declined by 44.7% to Rs 3,956.68 crore in Q3 December 2020 from Rs 7,155.42 crore in Q3 December 2019.

On the asset quality side, The ratio of gross NPAs to gross advances stood at 8.48% as on 31 December 2020 as against 9.14% as on 30 September 2020 and 10.43% as on 31 December 2019. The ratio of net NPAs to net advances stood at 2.39% as on 31 December 2020 as against 2.51% as on 30 September 2020 and 4.05% as on 31 December 2019. Proforma GNPA ratio and NNPA ratio at 9.63% and 3.36% as of 31 December 2020.

Maruti Suzuki India fell 2.70% to Rs 7654. The automaker posted a 24% jump in standalone net profit to Rs 1941.40 crore on 13.29% rise in revenue from operations to Rs 23,457.8 crore in Q3 FY21 over Q3 FY20.

The operating profit for the quarter was at Rs 1484.80 crore, a growth of 19.3% over the same period previous year on account of higher sales volume and cost reduction efforts partially offset by increase in commodity prices and adverse foreign exchange movement. Net profit for the quarter increased due to the above factors and higher non-operating income.

Maruti sold a total of 495,897 vehicles during the quarter ended December 2020, higher by 13.4% compared to the same period previous year. Sales in the domestic market stood at 467,369 units, growing by 13%. Exports jumped 20.6% year on year to 28,528 units in Q3 FY21 over Q3 FY20.

Colgate-Palmolive (India) gained 0.64% to Rs 1554.55 after the company's net profit jumped 24.7% to Rs 248.40 crore on a 7.8% rise in net sales to Rs 1,224.21 crore in Q3 FY21 over Q3 FY20.

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First Published: Jan 28 2021 | 2:27 PM IST

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